The elite funds run by legendary investors such as David Tepper and Dan Loeb make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don't follow. Because of their pay structures, they have strong incentives to do the research necessary to beat the market. That's why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Cosan Limited (NYSE:CZZ) from the perspective of those elite funds.
Is Cosan Limited (NYSE:CZZ) undervalued? The smart money is reducing their bets on the stock. The number of long hedge fund bets went down by 1 lately. Our calculations also showed that CZZ isn't among the 30 most popular stocks among hedge funds (view the video below). CZZ was in 15 hedge funds' portfolios at the end of June. There were 16 hedge funds in our database with CZZ holdings at the end of the previous quarter.
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are plenty of metrics investors put to use to grade their holdings. A duo of the most innovative metrics are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the top fund managers can outperform the S&P 500 by a significant amount (see the details here).
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn't rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let's take a look at the fresh hedge fund action regarding Cosan Limited (NYSE:CZZ).
What have hedge funds been doing with Cosan Limited (NYSE:CZZ)?
Heading into the third quarter of 2019, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -6% from the first quarter of 2019. On the other hand, there were a total of 17 hedge funds with a bullish position in CZZ a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Renaissance Technologies was the largest shareholder of Cosan Limited (NYSE:CZZ), with a stake worth $101.2 million reported as of the end of March. Trailing Renaissance Technologies was Arrowstreet Capital, which amassed a stake valued at $32.2 million. Millennium Management, Moon Capital, and Two Sigma Advisors were also very fond of the stock, giving the stock large weights in their portfolios.